Queensland property investors are already looking to exit the market amid revelations negative gearing could be abolished, agents say.

Ray White Marsden principal Avi Khan said landlords he had spoken to were concerned about the federal government’s plans and already saying they may sell their investment properties before any changes are introduced.

A home in Bracken Ridge is one of Brisbane’s homes listed for rent at $600 a week – a little under Brisbane’s median rental price.

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Mr Khan is expecting a flood of requests for property appraisals in the coming days as investors considered their options.

“The investors we have on our books are also our current buyers and they’re saying if the government is suggesting there will be changes (to negative gearing), it will make us reconsider buying,” Mr Khan said.

“Last time this debate came up, we had a record number of investors looking for property appraisals to check the value of their homes.

“It’s all about the signals the market sends investors. When there are signals of negative gearing changes, they don’t want to buy and think about selling.”

HQ Property director Shannon Davis said he was also expecting investors to flee the market.

“This decade, a lot of properties were positive geared when interest rates were so low, and then with the 13 interest rate rises, everyone’s in a negative cash flow,” he said.

“As well as increased expenses for insurance, water, energy, maintenance — that would see further investors flee the market.

“If they didn’t get compensated through the benefit of negative gearing, it would make some forced sales. If they want to stay an investor, it’d also raise rents … they’re also capped on how many times they can raise the rent, so I would say it’d make more forced sales.”

Anthony Albanese has been accused of avoiding whether or not the Labor government intends to make changes to negative gearing, with some fearing it will be scrapped altogether. Picture: NewsWire/Martin Ollman

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Faced with a housing crisis, Prime Minister Anthony Albanese has confirmed the Treasury is looking at options to curb the use of negative gearing and the capital gains tax deduction for property investors.

At least 622,000 taxpayers across the state own an investment property, based on bond figures from the Rental Tenancies Authority (RTA), but that doesn’t take into account holiday homes.

The Onsite Manager agent Michael Rudd said it was too early to tell if investors were reconsidering plans to buy in the wake of the revelations Labor was considering a rollback of tax breaks for investors.

“It’s all very new … I don’t think most investors would react in a negative way until they were a bit more informed,” Mr Rudd said.

“Certainly if it was to proceed, it could put a lot of pressure on rent rates, because if they’re not going to get an incentive of some sort, they’re going to offset it in other ways — and obviously, those other ways would be raising rent.”

“Negative gearing is a useful tool to encourage investors into the market, so they can provide homes to renters which would in theory reduce pressure on rent rates.

“Taking the incentive away, along with the rental reforms that have already come through, could see investors move out of the market … a positive is there might be more rental homes for sale, but given the amount of people moving to Queensland, it just won’t keep pace.”

Brisbane is the second-most expensive city to rent a unit in throughout Australia, right behind Sydney. Picture: Liam Kidston

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Place Estate Agents chief auctioneer Peter Burgin said news of possible changes to negative gearing was unlikely to have a material impact on the Brisbane market — although it could work in buyers’ favour.

“Any negativity out there probably gives buyers another tool in their belt to drive a higher bargain,” Mr Burgin said.

If changes to tax breaks were to come into effect, he said those investors who relied solely on negative gearing benefits may sell their properties.

“It could create more supply, and if demand doesn’t absorb it, we could see some impact on (home) values, but I don’t think we’d see that in inner Brisbane because there are enough downsizers looking to buy that kind of investment stock.”

** Nicholas Finch was a co-author of this story.